The latest draft regulations for Universal Credit released in December 2012 confirm that there will be large cuts for the severely disabled under Universal Credit. There will be no equivalent of the Severe Disability Premium (worth £58.20 at present). Also claimants who are recognised as both sick and a carer by the present system are another group who will lose out as the carers element of Universal Credit can not be paid at the same time as the 2 sickness elements (the LCWA and the LCWRA elements).
Transitional protection tries to ensure that existing benefit claimants don’t miss out when benefits entitlements are cut. Transitional protection under the Universal Credit system will be available to protect those that move over from the old system, for example ESA. However this protection will be lost over time as it won’t be uprated with inflation. Minister Mark Hoban has also stated- with regard to changes of circumstances ‘Therefore transitional protection will end altogether if a claimant’s circumstances change significantly (i.e.)
a partner leaving or joining the household;
a sustained (three-month) earnings drop beneath the level of work that is expected according to their claimant commitment;
the universal credit award ending; and/or
one (or both) members of the household stopping work.
Once transitional protection has ended it will not be applied to any future awards.’